Fasano calls Citizens president to testify, says company isn't following 2012 law

Rep. Mike Fasano
was denied the opportunity to sit on the House’s Insurance and Banking
committee, but the outspoken consumer advocate is still finding a way to get
involved in the debate over property insurance.

As the chair of the Joint Administrative Procedures
Committee, Fasano, R-New Port Richey, is requesting that the president of
Citizens Property Insurance appear at the next committee meeting to answer some
tough questions.

Despite a law passed last year that requires Citizens to
offer a more basic (and usually cheaper) policy to homeowners beginning Jan. 1,
the state-run insurer has not yet begun to do so.

“Effective Janurary 1, 2013, the corporation shall offer a
bssic personal lines policy similar to an HO-8 policy with dwelling repair
based on common construction materials and methods,” reads Fasano’s letter,
quoting a law passed last year. “It is the Committee’s understanding that this
requirement has yet to be implemented by the Corporation.”

Fasano wants Citizens president BarryGilway and Insurance
Commissioner to appear before his committee at its next meeting, on Feb. 19.

Citizens acknowledges that it has not begun to offer the
statutorily required policy, but said that’s because the Office of Insurance
Regulation approved the policy “much later than anticipated”

“There was clear discussion at the board and committee level
that based upon the filing not being approved until December that we would not
be able to issue policies beginning January 1 but would have them available as
soon as possible,” said spokesperson Christine Ashburn.

The back-and-forth between Citizens and OIR went on late
last year as Citizens’ board members expressed major reservations about
offering cheaper policies. OIR said Citizens’ rates for the new policy should
be considerably lower than what the insurer originally requested. After lengthy
negotiations, OIR agreed to approve the HO-8 rates that were lower than
Citizens’ original proposal, but with strict requirements.